[StBernard] President Obama Announces Historic 54.5 mpg Fuel Efficiency Standard

[Westley Annis]

President Obama Announces Historic 54.5 mpg Fuel Efficiency Standard 

Consumers will save $1.7 trillion at the pump, $8K per vehicle by 2025 
  
WASHINGTON, DC - President Obama today announced a historic agreement with
thirteen major automakers to pursue the next phase in the Administration's
national vehicle program, increasing fuel economy to 54.5 miles per gallon
for cars and light-duty trucks by Model Year 2025. The President was joined
by Ford, GM, Chrysler, BMW, Honda, Hyundai, Jaguar/Land Rover, Kia, Mazda,
Mitsubishi, Nissan, Toyota and Volvo - which together account for over 90%
of all vehicles sold in the United States - as well as the United Auto
Workers (UAW), and the State of California, who were integral to developing
this agreement. 
  
"This agreement on fuel standards represents the single most important step
we've ever taken as a nation to reduce our dependence on foreign oil," said
President Obama. "Most of the companies here today were part of an agreement
we reached two years ago to raise the fuel efficiency of their cars over the
next five years. We've set an aggressive target and the companies are
stepping up to the plate.  By 2025, the average fuel economy of their
vehicles will nearly double to almost 55 miles per gallon." 
  
Building on the Obama administration's agreement for Model Years 2012-2016
vehicles, which will raise fuel efficiency to 35.5 mpg and begin saving
families money at the pump this year, the next round of standards will
require performance equivalent to 54.5 mpg or 163 grams/ mile of CO2 for
cars and light-duty trucks by Model Year 2025. Achieving the goals of this
historic agreement will rely on innovative technologies and manufacturing
that will spur economic growth and create high-quality domestic jobs in
cutting edge industries across America. 
  
These programs, combined with the model year 2011 light truck standard,
represent the first meaningful update to fuel efficiency standards in three
decades and span Model Years 2011 to 2025.  Together, they will save
American families $1.7 trillion dollars in fuel costs, and by 2025 result in
an average fuel savings of over $8,000 per vehicle. Additionally, these
programs will dramatically cut the oil we consume, saving a total of 12
billion barrels of oil, and by 2025 reduce oil consumption by 2.2 million
barrels a day - as much as half of the oil we import from OPEC every day. 
  
The standards also curb carbon pollution, cutting more than 6 billion metric
tons of greenhouse gas over the life of the program - more than the amount
of carbon dioxide emitted by the United States last year. The oil savings,
consumer, and environmental benefits of this comprehensive program are
detailed in a new report entitled Driving Efficiency:  Cutting Costs for
Families at the Pump and Slashing Dependence on Oil
<http://www.whitehouse.gov/sites/default/files/fuel_economy_report.pdf> ,
which the Administration released today.  
  
The Environmental Protection Agency (EPA) and the Department of
Transportation (DOT) have worked closely with auto manufacturers, the state
of California, environmental groups, and other stakeholders for several
months to ensure these standards are achievable, cost-effective and preserve
consumer choice.   The program would increase the stringency of standards
for passenger cars by an average of five percent each year. The stringency
of standards for pick-ups and other light-duty trucks would increase an
average of 3.5 percent annually for the first five model years and an
average of five percent annually for the last four model years of the
program, to account for the unique challenges associated with this class of
vehicles. 
  
"These standards will help spur economic growth, protect the environment,
and strengthen our national security by reducing America's dependence on
foreign oil," said U.S. Transportation Secretary Ray LaHood. "Working
together, we are setting the stage for a new generation of clean vehicles." 
  
"This is another important step toward saving money for drivers, breaking
our dependence on imported oil and cleaning up the air we breathe," said EPA
Administrator Lisa P. Jackson. "American consumers are calling for cleaner
cars that won't pollute their air or break their budgets at the gas pump,
and our innovative American automakers are responding with plans for some of
the most fuel efficient vehicles in our history." 
  
A national policy on fuel economy standards and greenhouse gas emissions
provides regulatory certainty and flexibility that reduces the cost of
compliance for auto manufacturers while addressing oil consumption and
harmful air pollution. Consumers will continue to have access to a diverse
fleet and can purchase the vehicle that best suits their needs. 
  
EPA and NHTSA are developing a joint proposed rulemaking, which will include
full details on the proposed program and supporting analyses, including the
costs and benefits of the proposal and its effects on the economy, auto
manufacturers, and consumers.  After the proposed rules are published in the
Federal Register, there will be an opportunity for public comment and public
hearings.  The agencies plan to issue a Notice of Proposed Rulemaking by the
end of September 2011. California plans on adopting its proposed rule in the
same time frame as the federal proposal. 
Given the long time frame at issue in setting standards for MY2022-2025
light-duty vehicles, EPA and NHTSA intend to propose a comprehensive
mid-term evaluation.  Consistent with the agencies' commitment to
maintaining a single national framework for vehicle GHG and fuel economy
regulation, the agencies will conduct the mid-term evaluation in close
coordination with California. 
  
In achieving the level of standards described above for the 2017-2025
program, the agencies expect automakers' use of advanced technologies to be
an important element of transforming the vehicle fleet.  The agencies are
considering a number of incentive programs to encourage early adoption and
introduction into the marketplace of advanced technologies that represent
"game changing" performance improvements, including: 
  
Incentives for electric vehicles, plug-in hybrid electric vehicles, and fuel
cells vehicles; Incentives for advanced technology packages for large
pickups, such as hybridization and other performance-based strategies;
Credits for technologies with potential to achieve real-world CO2 reductions
and fuel economy improvements that are not captured by the standards test
procedures.  
  
In addition, EPA plans to propose provisions for: 
Credits for improvements in air conditioning (A/C) systems, both for
efficiency improvements and for use of alternative, lower global warming
potential refrigerant; Treatment of compressed natural gas (CNG); Continued
credit banking and trading, including a one-time carry-forward of unused MY
2010-2016 credits through MY 2021. 

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